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Re: U.S. GDP Grows Just 1.3%

Originally Posted by Conservative

Since you ignore the Obama results and anything that I use to refute your comments, it serves no purpose other than to restate the same thing over and over again. Keep digging that hole deeper and deeper

Stop lying, Conservative. I've responded to you about that. Don't claim I don't because I stopped responding since you say the same thing 400 times every day.

Re: U.S. GDP Grows Just 1.3%

Originally Posted by Sheik Yerbuti

Stop lying, Conservative. I've responded to you about that. Don't claim I don't because I stopped responding since you say the same thing 400 times every day.

then respond to the Obama record and tell me why that isn't going to be on the ballot in 2012? Think that 24 million unemployed and under employed Americans think Obama has been successful? seems like you are in a declining minority these days, 40% Obama approval ratings? Hmmm.

Re: U.S. GDP Grows Just 1.3%

What I want is for you to be specific. What lies about the stimulus? What lies about unemployment numbers? Etc. These are conservative talking points -- not specific allegations.

Pass the stimulus and the unemployment rate will not exceed 8%, that was a lie. With the passing of the stimulus unemployment today would be 6.5%, that is a lie. Looks to me like research isn't a strong suit of yours but you have no problem buying the Obama rhetoric. Suggest you do some better research or any research

Re: U.S. GDP Grows Just 1.3%

Originally Posted by donsutherland1

Debt overhang remains a drag. From 2010Q1 to 2011 Q1 (domestic nonfinancial debt figures are not yet available for Q2), domestic nonfinancial debt rose a brisk $2.35 for every dollar of GDP. The federal government and corporations led the way in this increasing leverage. That will become more problematic as yields rise down the road. Meanwhile, household deleveraging continues. That continues to put a drag on personal consumption growth. Finally, in a whiff of what lies ahead as fiscal consolidation gets underway at some point in the future--fiscal consolidation creates a headwind early on, it's payoff is medium- and longer-term--a large part of Q1's near flat growth was the result of a 9.4% decline federal government consumption expenditures and gross investment (stimulus winddown and modest fiscal consolidation). Due to the nation's unsustainable fiscal trajectory, such consolidation is necessary. Otherwise, the overall cost of capital will eventually rise to levels that damp growth and worsen the nation's long-term imbalances. Current political dysfunction may result in some bump in interest rates, even if a crisis is averted and no credit downgrade occurs, on account of a more riskier profile for the U.S.

I have been trying to compare the data to previous recessions and I found a blog post on the federal reserve about the contributors to GDP:

From what I can tell, consumer spending has been historically weaker in this recession. Also, residential spending for obvious reasons isn't there. Government spending and a lack of growth in services seem to be the next biggest dampers on growth when comparing to historical experience. However, it seems like this current recession could be called somewhat of a boom in business investment spending. If you look at the contributors to growth it has been durable goods and equipment and software spending (even exports have not been a drag on the economy as it has been historically). I agree, it seems that excessive household and government debt is slowing down the economy significantly. On the other hand corporate america has never really been healthier, so that is a plus. I think if we can get our fiscal house in order in the next few years the US could have very good long run prospects, we just need to get past this bump in the road.